2020 is a difficult year for dorpshipping business since the COVID19 virus, the cost and delivery time doubled while the profits being cut down, thus more and more Shopify sellers give up low value products and turn to high profit products for dropshipping business. Here we list hhe high profit margin products and blue ocean product data in May 2020 on 1688 cross border eCommerce market, you may keep up with product trends and scientifically develop good products that the market needs today.
From the 1688 top 100 GMV subcategories, we selected a list of subcategories with stable sales growth and better than the overall market performance, and screened them according to the two dimensions of new product sales and sales growth, and selected the top 20 GMV rankings. List of hot new products.
The average unit price of new products on 1688 in May＞$8
May new product sales = total GMV of products uploaded within 30 days
We ranked the above 20 hot-selling new products according to the size of “sales”, and added “new product listing competition”, “PB + refund cost”, “PB cost ratio” and “refund rate” and other indicators that affect profit, so that Merchants can better determine the product’s developable value.
Green hook: the value is lower than the average standard
Red cross: the value is higher than the average standard
Yellow exclamation point: slightly higher than the average standard
PB + refund rate = PB cost ratio + refund rate
PB cost ratio = PB cost / total sales
Refund rate = refund amount / sales
New product listing competition degree:
The ratio of the number of listings of new products to the sum of the number of listings in this subcategory. Subcategories with lower indicators such as new product listing competition, PB cost ratio, and refund rate mean that the lower the platform cost and the higher the profit level, it is the ideal new product development target.
The following are the 1688 high profits subcategories:
Outdoor camping accessories
However, due to the virus the average delivery speed far more slower than 2019, which cause high return rates. How to optimize Shopify return rates?
Refund rate = refund amount / sales
Product Rating: Rating
Customer price: average selling price per order
Days due: TTD, the time from order release to order due
The refund rate is a key latitude that affects the profit level of a product. Effectively reducing the refund rate helps increase the profit level of the product.
“Product rating”, “customer unit price” and “proper investment days” are considered to be the three major indicators that affect the refund rate.
Since the high-price unit price products are usually delivered through logistics channels with proper delivery and guaranteed timeliness, the delivery rate is relatively high. Therefore, “product rating” and “customer unit price” are the strong correlation indicators that affect the refund rate.
Currently 86Deal mainly ship from China to USA and EU countries via DHL, small package line from 4PX, Yunexpress and Yanwen, which is relatively stable than epacket and other China post line. For example, small packages shipping from China to UK, France, Germany usually takes 7 to 12 days, other EU countries 10 to 15 days. USA and Canada 8 to 15 days.
1688 Top20 subcategories of high-margin blue ocean products
For the same product pool, when we screen from low to high based on the standard of “PB cost ratio + refund rate”, we get the Top20 list of high-margin blue ocean new product sub-categories in May on 1688 cross border eCommerce market.
After sorting out the above 20 subcategories, we will summarize them into the following four major categories:
Makeup & Beauty: Body shapers, Slimming, Skin care
Fashions: Polos, Sunglasses, Atheletic sets, Drawstring pants
Hobbies: Games, Fishing tools, Gardening supplies, Bug repellents & Pest control
Home decor: Slipcovers
By comparing the PB cost ratio of the above subcategories, we can easily find that the PB cost ratio of new products within 30 days fluctuates within a lower range, and the PB cost ratio of the Necklaces category is the highest, but it does not exceed 20%. .
Thanks to the natural flow of old products, the overall PB cost ratio of the top 20 high-margin blue ocean subcategories is less than 5%.
You can do more research on Aliexpress, Amazon for the hot sale products based on these 1688 high profits subcategories then test them in your Shopify store, you will find the best seller products more easier.